Thousands of Georgians are seeing their federal stimulus payments stimulate state government.

Georgia is leading the nation in the number of stimulus payments intercepted by the state because the recipients owe back income taxes.

Part or all of 16,051 stimulus payments to Georgians had gone to satisfy back taxes as of the end of May. New York was second, with 11,359 payments intercepted.

Georgia has collected $4.66 million worth of federal stimulus money so far, according to federal figures released to the State Department of Revenue. And millions more likely will wind up in state coffers as the stimulus payments continue.

"I knew we'd get something, but I've been surprised by the number, and it takes a lot to surprise me," said Revenue Commissioner Bart Graham. "Sixteen thousand people. That's a college basketball arena full of people."

Nationwide, $47 million in payments to more than 123,000 people have been intercepted so far.

The state joined the federal "offset" system almost five years ago. That allows it to get all or part of federal tax refunds due to Georgians who owe back state income taxes. Graham said the state has collected $122.2 million in back taxes from the program since then.

"We could have never gotten enough people to chase that down by ourselves," he said. "Even if we had, it would have taken years."

PAYBACK

Six states getting the most federal stimulus payments to pay back state income taxes. Total is for nation:

State.....Number...Amount

Georgia...16,051...$4.66 mil.

New York..11,359...$4.71 mil.

Missouri...7,062...$2.99 mil.

Virginia...6,355...$2.71 mil.

Ohio.......6,012...$2.89 mil.

Indiana....5,344...$1.29 mil.

Total....123,407.. $47.9 mil.

Source: Fiscal Management Service, a bureau of the U.S. Department of the Treasury